New York legislators view sweepstakes casinos as unregulated gambling sites. Despite their rapid growth, lawmakers framed the bill as a consumer-protection measure meant to close regulatory gaps.

Industry groups argue the bill misunderstands the sweepstakes model and point to an estimated $762 million in statewide sales last year. They believe the ban will remove a sizable entertainment sector and economic driver from New York.

It bans online sweepstakes casinos in New York by targeting the dual-currency model these platforms use. It also holds financial institutions, payment processors, suppliers, and affiliates liable if they help operate or promote them.